Atlas Copco AB (LTS:0XXV) ROCE % : 26.75% (As of Sep. 2024)

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What is Atlas Copco AB ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Atlas Copco AB's annualized ROCE % for the quarter that ended in Sep. 2024 was 26.75%.

Atlas Copco AB ROCE % Historical Data

The historical data trend for Atlas Copco AB's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Atlas Copco AB ROCE % Chart

Atlas Copco AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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30.76

23.84

26.78

29.49

31.22

Atlas Copco AB Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															31.53	28.88	27.50	27.09	26.75

Atlas Copco AB ROCE % Calculation

Atlas Copco AB's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	37356	/	( ( (172301 - 61458)	+	(182684 - 54212) )	/ 2 )
	=	37356	/	( (110843	+	128472)	/ 2 )
	=	37356	/	119657.5
	=	31.22 %

Atlas Copco AB's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	36936	/	( ( (197956 - 61760)	+	(200571 - 60654) )	/ 2 )
	=	36936	/	( ( 136196	+	139917 )	/ 2 )
	=	36936	/	138056.5
	=	26.75 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Atlas Copco AB (LTS:0XXV) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Atlas Copco AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Atlas Copco AB (LTS:0XXV) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ATLFF:USA ATLKY:USA ATLPF:USA ATLCY:USA ATCO B:Sweden ATCO A:Sweden ATCOBs:UK ATCOAs:UK 0XXT:UK ACO4:Germany

Address

Sickla Industrivag 19, Nacka, Stockholm, SWE, SE-105 23

Website

https://www.atlascopcogroup.com

Atlas Copco is a 140-year-old Swedish company that pioneered air compression technology and remains a leading air compressor manufacturer. Atlas Copco is also a leading manufacturer of vacuum pump equipment, industrial power tools, and portable power and air compression equipment. The company's operations match the geographic breadth of its customers, with a presence in 180 countries. Atlas Copco's revenue is derived from three sources: initial equipment sales, spare parts, and maintenance.

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